Starting a business in our modern era is much easier now than it was years ago. We have information accessible to us at the click of a mouse and can learn from countless others about the journey of starting a business. Often, the people we learn from are those who have found success, and their insights give us valuable information about how to forge a path for ourselves. Unfortunately, we rarely hear from those who tried but failed, and returned to the working world. If you are considering starting a business for yourself, you need to start separating the facts from the fiction. In this post, we’ll discuss three common myths about small-business debt. This myths are largely due to the fact that we mostly hear from business success stories but rarely failure stories. Realistically, we need to take a neutral stance in order to make our own rational decisions about our small business finances.
1. If I Work Hard Enough, My Business Will Succeed
This myth is a fun one to buy into, but can lead to hurtful reality checks. Many times, business owners have to start several businesses before finding one that takes off. The success of a business has to do with both the passion and drive of the owner as well as the market place.
You can control your own work habits and mindset, but the way the public responds to all of your hard work is ultimately out of your hands. Even if you are the most passionate person in the world, you won’t be able to sell a product that the mass market is not interested in. Marketplaces fluctuate due to the economy, politics, and even weather events, all of which are completely out of your hands. So set aside the “If I Just Work Hard Enough” blinders, and get realistic about the amount of debt you are willing to take on while working towards your business goals.
If you are not sure that your business will succeed, you only want to take on an amount of debt that you can mitigate if the idea does not take off. This will allow you to feel more comfortable with your financial situation and allow you to evaluate your business clearly, and abort the idea if possible. Business owners often learn from their failures and move on to another idea, but if you are in debt to the tune of tens of thousands of dollars it will be much more challenging to move on to your next adventure.
2. The Best Businesses Owners Take Big Risks Because They Believe In Their Product
Are you under the false impression that all business owners have to take big risks? This is not the case. Smart business owners balance risk with reward, and only take on financial risks within certain boundaries. This means that they may take a calculated risk, but they will have a back up plan for what to do if the reward does not come through.
Don’t fall into the trap of believing glamorous stories about individuals who risked it all because they believed so intensely in their dream. This is the exception rather than the norm, and for every person who risked it all and won there are several more who risked it all and lost. Instead of putting yourself in that kind of a position, take calculated and intelligent risks. You can continue to believe passionately in your product or service, but do so in a wise and rational way.
3. I Need To Make Every Decision About Business Debt On My Own
Business owners often love the feeling of freedom that they have when it comes to making choices. As a founder of a small business, you are your own boss. You make your own decisions. But that does not mean that you do not listen to advice from others. Instead, you can use resources wisely by involving others in your decision making process. Experts in debt management, such as the staff at Nationwide Debt Reduction Services, can help you make wise financial decisions and manage your small business debt.